ATI vs Diamondback Energy Which Offers More Value?

Both ATI and Diamondback Energy are leading companies in the energy sector, known for their strong performance and growth potential. ATI, a global manufacturer of advanced materials, operates in a variety of industries, while Diamondback Energy is a major player in the oil and gas sector. Both companies have seen fluctuations in their stock prices, influenced by market trends and industry conditions. Investors looking for opportunities in the energy market may find value in exploring the stocks of ATI and Diamondback Energy.

ATI or Diamondback Energy?

When comparing ATI and Diamondback Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ATI and Diamondback Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ATI has a dividend yield of -%, while Diamondback Energy has a dividend yield of 6.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%. On the other hand, Diamondback Energy reports a 5-year dividend growth of 84.38% year and a payout ratio of 59.52%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ATI P/E ratio at 20.34 and Diamondback Energy's P/E ratio at 11.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATI P/B ratio is 4.27 while Diamondback Energy's P/B ratio is 0.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATI has seen a 5-year revenue growth of 1.12%, while Diamondback Energy's is 1.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATI's ROE at 26.03% and Diamondback Energy's ROE at 14.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.70 for ATI and $179.00 for Diamondback Energy. Over the past year, ATI's prices ranged from $38.04 to $68.92, with a yearly change of 81.18%. Diamondback Energy's prices fluctuated between $145.70 and $214.50, with a yearly change of 47.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.